The property is now worth $1,400,000
Mark will have to buy over Michelle’s half of the property which is valued at $700,000.
The current outstanding loan amount is $680,000
So right now, Michelle’s half of the loan is $340,000. Michelle’s share has now appreciated to $700,000(half of the current valuation of $1.4m). What she stands to gain from selling her part share to Mark is $700,000(current value) minus $340,000(her share of the outstanding loan).
She will gain $360,000.
From this $360,000, she will need to return the CPF which she has withdrawn to buy this property, the principal amount plus accrued interest. This amounts to $180,000
So the cash she will get from this sale of half share of the property to Mark is
$360,000 less $180,000 = $180,000 cash
She will also have a total of $225,000 in her CPF for her next purchase.
For Mark to purchase her half share of the property, he will need the funds shown in the below table.